Illinois Real Estate Practice Exam

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Prepare for the Illinois Real Estate Test. Practice with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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What should a broker do when they discover a major hidden defect in a property being sold "As is"?

Ignore the defect
Fix the defect before showing the property
Advise the buyer of the defect
Continue selling the property without disclosure

The correct answer is: Advise the buyer of the defect

When a broker discovers a major hidden defect in a property being sold "As is," the appropriate action is to advise the buyer of the defect. This is crucial because brokers have a legal and ethical obligation to disclose material facts that could affect a buyer’s decision. Even in "As is" transactions, where the seller may not be responsible for repairs or warranties, the broker's duty extends to ensuring the buyer is aware of any significant issues that could impact the property's value or safety. Failure to disclose a major hidden defect could lead to potential legal repercussions for both the broker and the seller if the buyer later experiences issues related to that defect. Therefore, transparency and communication are vital components of a broker's responsibility to protect the interests of all parties involved in the transaction.